GHCL Limited Q3 FY26 Earnings Call Summary

Summary

GHCL Limited - Q3 FY 2026 Earnings Call Summary Thursday, January 29, 2026 4:00 PM IST

Event Participants

Executives 3 Manu Jain (Sr. General Manager, IR and Finance), Raman Chopra (CFO and Executive Director, Finance), R.S. Jalan (Managing Director)

Analysts 8 Aditya Khetan, Ansh Khimavat, Arthur, Darshan Deora, Darshita, Jainam Ghelani, Rohit Nagraj, Rohit Sinha

Financials & KPIs

Geographic & Segment Commentary

• Soda Ash (Domestic): Demand remains resilient with ~5% growth in the current year, expected to rise to 5.5-6% in FY27 driven by the solar glass sector. Management reported a volume growth of 5-7% this quarter despite an oversupplied market and 10% higher import volumes in 9M FY26.
• International Markets: Global pricing is under pressure due to a demand-supply mismatch in China (10M ton natural Soda Ash addition) and stagnant demand in Europe. Management noted the closure of ~1M tons of inefficient capacity in the UK and Poland during 2025 as a sign of industry rebalancing.

Company-Specific & Strategic Commentary

• Diversification Projects: Bromine (2,800 tons) and Vacuum Salt projects are in the final stages, with commissioning expected by late Q4 FY26. These utilize waste energy and existing salt fields to provide higher-margin revenue streams starting Q1 FY27.
• Cost Leadership: Management highlighted ₹140 crores in efficiency savings in the previous year and continued focus on reducing power, steam, and raw material consumption to mitigate margin erosion.
• Greenfield Expansion: Progress on the Greenfield Soda Ash project has slowed due to technical hurdles in land acquisition and land-use changes. Management now expects commissioning of Phase 1 and 2 by 2030.

Guidance & Outlook

Risks & Constraints

Q&A Highlights

Pricing and Anti-Dumping Duty

• Question: What is the status of the Anti-Dumping Duty (ADD) and impact of imports? (Aditya Khetan, Rohit Sinha)
• Answer: The 90-day window for Ministry of Finance approval has passed without communication, implying rejection; however, the industry is exploring alternative protections. Current pricing is seen as “rock bottom” as many global synthetic plants are likely making cash losses at these levels (R.S. Jalan).

Solar Glass Demand

• Question: How significant is the demand contribution from the solar industry? (Rohit Sinha)
• Answer: Current demand is ~11,000 tons per month, expected to reach 28,000 tons per month by March 2027 as new solar glass projects commission following the removal of import duty exemptions on solar panels (R.S. Jalan).

Operational Impact of Shutdown

• Question: What was the impact of the maintenance shutdown this quarter? (Jainam Ghelani)
• Answer: The shutdown resulted in a production loss of ~20,000 tons, but revenue was protected by liquidating inventory to meet sales volumes that grew 5-7% YoY (R.S. Jalan).

Land and Greenfield Strategy

• Question: Why has the Greenfield project been delayed and what is the new timeline? (Darshan Deora)
• Answer: Environmental clearances are in place, but land acquisition and land-use changes face technical hurdles; the company now targets 2030 for both phases, noting a 2.5 to 3-year construction cycle once the “zero date” is established (R.S. Jalan).

Key Takeaway

GHCL Limited reported a steady Q3 FY26 with revenue of ₹773 crores, as 5-7% volume growth successfully offset lower realizations caused by a 10% spike in industry imports and the non-imposition of anti-dumping duties. Despite a 20,000-ton production loss from a planned maintenance shutdown, EBITDA margins were defended at 22.7% through aggressive cost-optimization and operational efficiency. Strategically, the company is nearing the commissioning of its Bromine and Vacuum Salt diversification projects by Q4 FY26, though its major Greenfield Soda Ash expansion has been delayed to 2030 due to land acquisition hurdles. Management remains optimistic about FY27, citing a projected 5.5-6% demand growth fueled by India’s solar glass sector expansion. GHCL maintains a robust balance sheet with ₹890 crores in net cash, having returned 116% of 9M PAT to shareholders via buybacks and dividends, positioning it to navigate the current “rock-bottom” pricing cycle.